Spreading Risk Involves

question 95

Multiple Choice

Spreading risk involves:

• A) finding assets whose returns are perfectly negatively correlated.
• B) adding assets to a portfolio that move independently.
• C) investing in bonds and avoiding stocks during bad times.
• D) building a portfolio of assets whose returns move together.

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Definitions:

Legal Fees

Legal fees are charges for the advice and services provided by lawyers, including consultation, representation in court, and the preparation of legal documents.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees, impacting organizational knowledge and continuity.

Moonlighting Unethically

Engaging in secondary employment that conflicts with one's primary job duties or interests, violating ethical or contractual obligations.

Real Fires

Actual incidents of uncontrolled burning, which can cause damage to properties and environments and require emergency response.